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60176
Federal Register
/Vol. 66, No. 232/Monday, December 3, 2001/Proposed Rules
(5) Used to produce Californiagasoline as defined in
§
80.81(a)(2).13. Section 80.104 is amended byrevising paragraph (a)(1)(i) andremoving and reserving paragraph(a)(2)(ix) to read as follows:
§
80.104Recordkeeping requirements.
* * * * *(a) ***(1) ***(i) Each batch of conventionalgasoline; and* * * * *14. Section 80.105 is amended byremoving and reserving paragraphs(a)(2) and (a)(3).15. Section 80.106 is amended byremoving and reserving paragraph (b).16. Section 80.128 is amended byremoving paragraphs (h) and (i).
Appendix D—[Reserved.]
17. Appendix D is removed andreserved.
Appendix E to Part 80—[Reserved.]
18. Appendix E is removed andreserved.
Appendix F to Part 80—[Reserved.]
19. Appendix F is removed andreserved.
Appendix G to Part 80—[Reserved.]
20. Appendix G is removed andreserved.
[FR Doc. 01
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29777 Filed 11
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BILLING CODE 6560
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50
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P
FEDERAL EMERGENCYMANAGEMENT AGENCY44 CFR Part 61
RIN 3067
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AD27
National Flood Insurance Program(NFIP); Increased Rates for FloodCoverage
AGENCY
:
Federal EmergencyManagement Agency (FEMA).
ACTION
:
Proposed rule.
SUMMARY
:
We (the Federal Insuranceand Mitigation Administration of FEMA) propose to increase the amountof premium policyholders pay for floodinsurance coverage under the NFIP for
‘‘
pre-FIRM
’’
buildings in coastal areassubject to high velocity waters, such asstorm surges, and wind-driven waves(
‘‘
V
’’
zones). (The term
‘‘
pre-FIRM buildings
’’
means buildings whoseconstruction began on or beforeDecember 31, 1974, or the effective dateof the community
’
s Flood InsuranceRate Map (FIRM), whichever date islater. Most pre-FIRM buildings and theircontents are eligible for subsidized ratesunder the NFIP.) We propose this rateincrease to bring the premiums wecurrently charge for pre-FIRM, V-zoneproperties more in line with their actualrisk.
DATES
:
We invite comments on thisproposed rule, which we should receiveon or before January 2, 2002.
ADDRESSES
:
Please submit any writtencomments to the Rules Docket Clerk,Office of the General Counsel, FederalEmergency Management Agency, 500 CStreet, SW., room 840, Washington, DC20472, (facsimile) 202
–
646
–
4536, or (e-mail)
rules@fema.gov.
FOR FURTHER INFORMATION CONTACT
:
Thomas Hayes, Federal EmergencyManagement Agency, Federal Insuranceand Mitigation Administration, 500 CStreet SW., Washington, DC 20472, 202
–
646
–
3419, (facsimile) 202
–
646
–
7970, or(e-mail)
Thomas.Hayes@fema.gov.
SUPPLEMENTARY INFORMATION
:
Background
On March 17, 1999, we published at64 FR 13115 a final rule that increasedthe subsidized premiums rates for
‘‘
pre-FIRM
’’
buildings in V-zones
—
areassubject to high velocity waters, such asstorm surges and wind-driven waves.(We use the term
‘‘
pre-FIRM
’’
todescribe construction that was startedon or before December 31, 1974, or theeffective date of the Flood InsuranceRate Map (FIRM) for a community,whichever date is later. The premiumrates we charge for flood insurancecoverage on pre-FIRM buildings are lessthan full-risk premiums.) This is howwe summarized our reasons for theincrease in 1999 at 64 FR 13116:
‘‘
In summary, we believe thattargeting a particularly risky class of properties with higher premium ratessupports FEMA
’
s overall program of loss reduction. It more accuratelyreflects the loss exposure of pre-FIRM,V-zone properties, which are at a greaterexposure to flood loss than pre-FIRM,A-zone properties. Also, it helps makepolicyholders aware of the danger of their V-zone properties.
’’
Currently, the rates for pre-FIRM, V-zone properties that apply to the first-layer limits of flood insurance coverageestablished by 42 U.S.C. 4013 areroughly twenty percent higher than theequivalent rates for pre-FIRM, A-zoneproperties. (For example, first layercoverage for single-family dwellingsamounts to $35,000 out of $250,000
—
the maximum amount available for suchstructures under the National FloodInsurance Program.) We believe that thedifference in loss exposure betweenthese two groups of risks is muchgreater than that. Therefore, we areproposing a further increase in the pre-FIRM, V-zone rates.Section 572 of the National FloodInsurance Reform Act of 1994, Pub. L.103
–
325, 42 U.S.C. 4015, however,imposes the following annual limitationon rate increases under the NFIP:
‘‘
Notwithstanding any other provision of this title, the chargeable risk premium ratesfor flood insurance under this title for anyproperties within any single riskclassification may not be increased by anamount that would result in the average of such rate increases for properties within therisk classification during any 12-monthperiod exceeding 10 percent of the average of the risk premium rates for properties withinthe risk classification upon commencementof such 12-month period.
’’
(42 U.S.C. 4015)
Our proposed rate increase for suchproperties would comply with thisstatutory limitation on annual rateincrease under the NFIP.
Statutory Mandates for Setting FloodInsurance Premiums
The Flood Disaster Protection Act of 1973 requires us to charge full-riskpremiums for flood insurance coverageon buildings when their construction began after December 31, 1974, or on orafter the effective date of the FloodInsurance Rate Map, if the second dateis later. (We call such construction
‘‘
post-FIRM
’’
construction.)The Flood Disaster Protection Act of 1973 also authorizes us to applychargeable premiums to pre-FIRMproperty and gives FEMA flexibility toset the flood insurance rates for suchproperty. The legislation calls for us to balance the need to offer reasonablerates that encourage people to buy floodinsurance with the statutory goal todistribute burdens fairly between allwho will be protected by floodinsurance and the general public.
Proposed Changes and Their Purposes
We are proposing to increase thecurrent subsidized rates we charge forthe initial limits of coverage under theNFIP for pre-FIRM properties in
‘‘
V
’’
zones on FEMA
’
s FIRMs. (
‘‘
V
’’
zonesrepresent coastal areas subject to highvelocity water such as wind-drivenwaves from storms or tidal surges thatare extremely hazardous to people andproperty.) Currently, these premiumrates are about twenty percent higherthan the equivalent rates we charge forpre-FIRM, A-zone zone properties. Weare proposing to further increase therates we charge for V-zone, pre-FIRMproperties to bring them more in linewith their greater exposure to floodlosses.
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60177
Federal Register
/Vol. 66, No. 232/Monday, December 3, 2001/Proposed Rules
Currently, the sum of the premiumand other administrative fees one paysfor flood insurance on subsidized pre-FIRM properties is less than ourexpected expenses and loss payments.This applies especially to pre-FIRM, V-zone properties.
Subsidized Rate Increases in the Past
We have increased the chargeable orsubsidized premium rates four timesduring the program
’
s history for thesame reason that we are proposing thisrule: to distribute burdens fairly amongall who will be protected by floodinsurance and to reduce the burden onthe general public. The changesproposed in this rule for pre-FIRM, V-zone properties would move us closertoward that goal by bringing subsidizedpremiums charged for buildings inextremely hazardous areas more in linewith the actual risk.
Comparison of Proposed Rate IncreasesWith Current Rates
The following chart compares thecurrent rates we charge for pre-FIRM, V-zone properties with the proposed rateincreases for pre-FIRM, V-zoneproperties. The rates for pre-FIRM, A-zone properties would be unaffected bythis proposal. Also these proposedincreases apply only to the rates chargedfor the
‘‘
first layer
’’
of flood insurancecoverage set by Congress in Section1306 of the National Flood InsuranceAct of 1968, as amended (Pub. L. 90
–
448):
Type of structureCurrent V Zone
1
rates peryear per $100 coverageon:Proposed V Zone ratesper year per $100 cov-erage on:StructureContentsStructureContents1. Residential:No Basement or Enclosure.......................................................................................82.95.911.06With Basement or Enclosure.....................................................................................88.95.981.062. All other including hotels and motels with normal occupancy of less than 6 monthsduration:No basement or Enclosure........................................................................................951.901.062.10With basement or Enclosure....................................................................................1.011.901.122.10
1
V Zones are Zones V1
 – 
V30, VE, and unnumbered V Zones.
National Environmental Policy Act(NEPA)
Pursuant to section 102(2) (C) of theNational Environmental Policy Act(NEPA) of 1969, 42 U.S.C. 4317
et seq.
,we are conducting an environmentalassessment of this proposed rule. Theassessment will be available forinspection through the Rules DocketClerk, Federal Emergency ManagementAgency, room 840, 500 C St. SW.,Washington, DC 20472.
Executive Order 12866, RegulatoryPlanning and Review
We have prepared and reviewed thisproposed rule under the provisions of E.O. 12866, Regulatory Planning andReview. Under Executive Order 12866,58 FR 51735, October 4, 1993, asignificant regulatory action is subject toOMB review and the requirements of the Executive Order. The ExecutiveOrder defines
‘‘
significant regulatoryaction
’’
as one that is likely to result ina rule that may:(1) Have an annual effect on theeconomy of $100 million or more oradversely affect in a material way theeconomy, a sector of the economy,productivity, competition, jobs, theenvironment, public health or safety, orState, local, or tribal governments orcommunities;(2) Create a serious inconsistency orotherwise interfere with an action takenor planned by another agency;(3) Materially alter the budgetaryimpact of entitlements, grants, user fees,or loan programs or the rights andobligations of recipients thereof; or(4) Raise novel legal or policy issuesarising out of legal mandates, thePresident
’
s priorities, or the principlesset forth in the Executive Order.For the reasons that follow we haveconcluded that the proposed rule isneither an economically significant nora significant regulatory action under theExecutive Order. The rule would resultin a modest increase in premiums for V-zone, pre-FIRM buildings and theircontents. The adjustment in premiumsrates would increase by slightly lessthan $3 million the amount of premiumcollected and deposited in the NationalFlood Insurance Fund each year. Itwould not have an annual effect on theeconomy of $100 million or more oradversely affect in a material way theeconomy, the insurance sector,competition, or other sectors of theeconomy. It would create no seriousinconsistency or otherwise interferewith an action taken or planned byanother agency. It would not materiallyalter the budgetary impact of entitlements, grants, user fees, or loanprograms or the rights and obligations of recipients thereof. Nor does it raisenovel legal or policy issues arising outof legal mandates, the President
’
spriorities, or the principles set forth inthe Executive Order.The Office of Management and Budgethas not reviewed this proposed ruleunder the provisions of Executive Order12866.
Paperwork Reduction Act
This rule does not contain a collectionof information and is therefore notsubject to the provisions of thePaperwork Reduction Act.
Executive Order 13132, Federalism
Executive Order 13132 sets forthprinciples and criteria that agenciesmust adhere to in formulating andimplementing policies that havefederalism implications, that is,regulations that have substantial directeffects on the States, or on thedistribution of power andresponsibilities among the variouslevels of government. Federal agenciesmust closely examine the statutoryauthority supporting any action thatwould limit the policymaking discretionof the States, and to the extentpracticable, must consult with State andlocal officials before implementing anysuch action.We have reviewed this proposed ruleunder E.O. 13132 and have determinedthat the rule does not have federalismimplications as defined by the ExecutiveOrder. The rule would adjust thepremiums for pre-FIRM buildings in V-zone areas. The rule in no way that weforesee affects the distribution of powerand responsibilities among the variouslevels of government or limits thepolicymaking discretion of the States.
List of Subjects in 44 CFR Part 61
Flood insurance.
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